Global LED Lighting Power Supply Market May Reach $10 Billion by 2016

　　The "LED Lighting Power Supply Components Market Opportunities" report released by IMS Research shows that the global LED lighting power supply market is expected to reach $10 billion by 2016.

　　The report points out that due to legislative reasons and continuously rising electricity costs, the LED lighting market is developing rapidly. Driven by this, the global demand for power supplies is expected to reach 4 billion units by 2016, equivalent to $10 billion. Ryan Sanderson, one of the report's authors and a senior market analyst, stated that demand for LED lighting solutions is growing across various application areas, from low-power LED lamps for residential lighting retrofits to high-power commercial and industrial LED lamps.

　　The report also points out that the traditional lighting market has long been deeply entrenched. Now, providing power supply components for LED lamps, LED manufacturers are facing new challenges and need strong professional expertise in power supply components, which creates opportunities for power supply manufacturers. The requirements for LED lighting power supplies mainly depend on design factors such as rated power, the number of LEDs and LED strings, and the usage environment. Sanderson stated that these design requirements, combined with the lack of LED lighting standards, mean that LED luminaire manufacturers need to possess strong professional expertise in power supply components, and can hire industry experts or cooperate with professional power supply manufacturers.

More than 50% of the LED Power Supply Market Will Be Led by Power Supply Manufacturers in 2016

According to the report, LED lighting will become the only opportunity for the power supply industry, although general lighting has always been a relatively small, low-growth market for the power supply industry. However, competition in the lighting industry has become extremely fierce, and some large LED luminaire manufacturers are looking for ways to address these challenges. Jonathon Eykyn, one of the report's authors and a market analyst, noted that some large LED luminaire manufacturers, through subsidiaries or acquisitions of power supply companies, are already capable of designing and manufacturing power supply circuits. Philips Advance is a typical example. These vertically integrated companies have already carved out a share of the opportunities across the overall power supply market. However, in-house design and manufacturing of power supply components only works in high-volume, low-cost markets; in medium- and high-power applications, the design process is more complex, and in such cases it is more cost-effective to outsource power supply design to specialized power supply manufacturers. Therefore, the IMS Research report predicts that more than 50% of the LED power supply market will be dominated by power supply manufacturers in 2016.